Sydney, Oct 5, 2007 (ABN Newswire) -
Merger talks between top miners Zinifex and Oxiana have stalled leaving both open to takeover bids from foreign predators. Talks between the two began earlier this year with the aim of combining base-metal and precious-metal mines in Australia and Laos and an international pipeline of developments to create Australia's third biggest mining company. But negotiations of the last few months have come to a halt after Zinifex made moves to expedite the float of its Nyrstar assets. The float could leave Zinifex cashed up to the tune of $2.3 billion and possibly on the lookout for a more compelling deal. Zinifex has bought a strategic stake in copper miner Aur Resources earlier this year, but was thwarted by a friendly takeover from Teck Cominco. Zinifex has seen outstanding profit growth in recent years.
Aussie gold miner Kingsgate Consolidated has taken some of the pressure off its disappointing profit performance by selling its 18.35 per cent stake in explorer Andean Resources. The $69.9 million raised from the sale will give the struggling miner some breathing space as it awaits approval from the Thai government to expand its Chatree gold mine. Kingsgate has been restricted to mining low-grade, high-cost ore from deep within the existing pit as it awaits approval on its $112 million expansion of the mine which should take production to a 300,000 ounce a year operation. Kingsgate Consolidated posted a net loss last financial year.
Straits Resources has completed its share placement raising over $134 million dollars. The shares were priced at $4.70 each and net funds raised will be used to reduce the Tritton copper hedge book, restructure the Company's debt facilities and provide funding for continued expansion and potential acquisitions. The global bookbuild, jointly managed by RBC Capital Markets and Austock Corporate Finance was heavily over-subscribed by both domestic and international investors. Straits Resources now intends to undertake a Share Purchase Plan with documentation sent to shareholders after October 15. Straits Resources has recovered from a loss in 2002 to produce varying profit results.
The full report is available at the following video and audio links.
Video Link
http://abnnewswire.net/fnnlnk/36S87802Audio Link
http://abnnewswire.net/lnk/L5B97385Source: Finance News Network © 2007
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